Circular Economy Strategies: A Configurational Approach to Design, Innovation, and Organization
Firms can achieve higher levels of circularity by strategically configuring their design, innovation, and organizational approaches, rather than adopting a one-size-fits-all solution.
British Journal of Management · 2025
Key Findings
- 01Four distinct firm-level configurations of circular economy strategies were identified.
- 02These configurations are characterized by specific combinations of design efforts, innovation strategies, and organizational capabilities.
- 03The interplay between these strategic elements is critical for achieving high levels of circularity.
Application
Design takeaway
Designers must collaborate with innovation and management teams to ensure design strategies are aligned with and supported by the company's overall approach to circularity.
How to apply
When developing a new product or redesigning an existing one with circularity goals, consider how the design choices will be supported by the company's innovation pipeline and operational structures.
Project actions
- 01When planning a design project focused on sustainability, consider the broader business context and how your design will be implemented and supported.
- 02Think about how your design choices can enable new business models or operational efficiencies that contribute to a circular economy.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a nuanced framework for understanding CE strategies.
- +Uses a rigorous qualitative comparative analysis method (fsQCA).
- +Offers actionable insights for managerial practice.
Limitations
The specific configurations identified may be unique to the industry studied, requiring adaptation for different product types or market sectors.
Reliability & validity
The use of fsQCA and empirical data from a specific industry provides a degree of empirical validity. Reliability would depend on the consistency of the data collection and interpretation of the qualitative data.
Think critically
To what extent can a 'one-size-fits-all' design approach be truly circular, or does successful circularity inherently depend on context-specific strategic configurations?
Design Principles
"Holistic strategic alignment is key to successful circular economy transitions."
Understanding how different strategic elements interrelate is crucial for developing effective circular economy transitions. This research provides a framework for designers and businesses to analyze and build tailored strategies that align design efforts with innovation and organizational capabilities for greater sustainability impact.
What This Means for Your Design
To make products more sustainable and less wasteful, companies need to think about how their design choices fit together with their new ideas and how their company is organized to support these changes.
How to use in your project
- 1.Reference this study when discussing the strategic considerations for implementing sustainable design solutions within a business context.
- 2.Use the concept of 'configurations' to analyze how different design choices might work best in conjunction with specific organizational or innovation strategies.
Add to My Project
Quick Cite
(2025). Towards High Circularity: Reconfiguring Firm‐level Strategy. British Journal of Management. https://doi.org/10.1111/1467-8551.70019 Retrieved from https://designdex.org/study/510360a2-6a0f-47a6-8954-d7906b3740bd/circular-economy-strategies-a-configurational-approach-to-design-innovation-and-organization
Paragraph starter
This research highlights that achieving high circularity requires a strategic, configurational approach, where design efforts are intricately linked with specific innovation strategies and organizational capabilities. For a design project, this means considering how the proposed design solutions will be supported by the company's broader strategic framework for sustainability and resource management, rather than treating design in isolation.
Source
British Journal of Management
Towards High Circularity: Reconfiguring Firm‐level Strategy
journal · 2025
View sourceQuestions about this research
- What does the research say about circular economy strategies: a configurational approach to design, innovation, and organization?
- Designers must collaborate with innovation and management teams to ensure design strategies are aligned with and supported by the company's overall approach to circularity. Evidence: British Journal of Management (2025).
- Why does "Circular Economy Strategies: A Configurational Approach to Design, Innovation, and Organization" matter for design?
- Understanding how different strategic elements interrelate is crucial for developing effective circular economy transitions. This research provides a framework for designers and businesses to analyze and build tailored strategies that align design efforts with innovation and organizational capabilities for greater sustainability impact.
- How can designers apply this research?
- Designers must collaborate with innovation and management teams to ensure design strategies are aligned with and supported by the company's overall approach to circularity.
- What were the main findings?
- Four distinct firm-level configurations of circular economy strategies were identified.. These configurations are characterized by specific combinations of design efforts, innovation strategies, and organizational capabilities.. The interplay between these strategic elements is critical for achieving high levels of circularity.
- What research method was used?
- Configurational approach using fuzzy-set qualitative comparative analysis (fsQCA).
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2025 journal from British Journal of Management.
- What should I do differently in my next project?
- When developing a new product or redesigning an existing one with circularity goals, consider how the design choices will be supported by the company's innovation pipeline and operational structures.
- What are the limitations?
- The findings are specific to the Swedish wood construction industry and may not be directly generalizable to all sectors or geographical regions.
- Is there evidence that circular economy affects design outcomes?
- The research found that companies achieve greater circularity not by implementing isolated strategies, but by combining specific design, innovation, and organizational approaches in unique ways. Understanding how different strategic elements interrelate is crucial for developing effective circular economy transitions. Source: British Journal of Management (2025).
- Where does this design innovation research apply?
- Swedish wood construction industry It sits within sustainability research on designdex.org.
Related research topics
circular economy design research · evidence on circular economy · does circular economy improve design outcomes · design innovation studies for designers · circular economy and design innovation findings · sustainability research evidence